Buck Bandura, Branch Manager, CFP ®

IRA Eligibility

Are You Eligible to Contribute to an IRA?

Saving for a comfortable retirement is one of the most common financial goals among
working people. One popular retirement savings vehicle is the IRA. Even if you have
access to an employer-sponsored retirement plan, you may still be eligible to supplement
your employer’s plan by contributing to a tax-deductible IRA or a Roth IRA. This
calculator is designed to help you determine whether you qualify for the different
types of IRAs and to estimate the potential future value of each type of IRA for
which you are eligible.

Your Results

You can see below, and on the following pages, the types of IRAs you are eligible to make contributions to. If your income exceeds certain levels, you may qualify for a partial deduction (or no deduction) on your contribution to a traditional IRA, or you may be ineligible or only partially eligible for a Roth IRA. If that is the case, you can still consider making nondeductible contributions to a traditional IRA.

Are you eligible for a nondeductible IRA?

0.00

Your maximum annual contribution:

$0.00

After-tax value of nondeductible IRA when withdrawals begin:

$0

Estimated annual income from nondeductible IRA:

$0.00

Your Results (continued)

Are you eligible for a deductible IRA?

0.00

Your maximum annual contribution:

$0.00

After-tax value of deductible IRA when withdrawals begin:

$0.00

Estimated annual income from deductible IRA:

$0.00

Your Results (continued)

Are you eligible for a Roth IRA?

0.00

Your maximum annual contribution:

$0.00

After-tax value of Roth IRA when withdrawals begin:

$0.00

Estimated annual income from Roth IRA:

$0.00

Are you eligible for more than one type of IRA account? If so, you may need to choose which account is appropriate for you. In some cases, you may have more than one type of IRA account. You should be aware that no matter how many different IRA accounts you have, your total contributions to all IRAs in a single year may not exceed $6,000. In addition, individuals aged 50 and older may make an additional $1,000 "catch-up" contribution, bringing the total contribution limit to $6,500. This calculator assumes maximum contributions, including "catch-up" contributions for those age 50 and older.

The chart below illustrates the differences in after-tax income for Roth, deductible, and nondeductible IRAs using the values you entered.

Estimated Total After-Tax Income from Different IRAs

The information provided is not specific investment advice, a guarantee of performance,
or a recommendation. Rates of return will vary over time, particularly for long
term investments. Investments offering the potential for higher rates of return
also involve a higher degree of risk.

Note that withdrawals from deductible and nondeductible traditional IRAs are subject
to ordinary income taxes and if withdrawn prior to age 59&frac12 may be subject to
an additional 10 percent federal income tax penalty (for nondeductible traditional
IRAs, only the portion of the withdrawal attributable to earnings is taxable). To
qualify for the tax-free and penalty-free withdrawal of earnings, a Roth IRA must
be in place for at least five tax years and the distribution must take place after
age 59&frac12 or due to death, disability, or a first-time home purchase (up to a $10,000
lifetime limit). To the extent that they exceed total contributions, non-qualified
distributions are subject to a 10 percent federal income tax penalty and are includable
in gross income.

This hypothetical example is used for illustrative purposes only. Actual results will vary.

The information in this calculator is not intended as tax or legal advice, and it
may not be relied on for the purpose of avoiding any federal tax penalties. You
are encouraged to seek tax or legal advice from an independent professional advisor.
The content is derived from sources believed to be accurate. Neither the information
presented nor any opinion expressed constitutes a solicitation for the purchase
or sale of any security.

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